(AEY.L) Antrim Energy Inc Buy/Sell

MMbbls (best estimate) and 105.5 MMbbls (high estimate) in the recently acquired Greater Fyne Area

Due to increased gas volumes, current production in Argentina is approximately 2,050 boepd.
Antrim has emerged from the global financial crisis in a strong fiscal position with $31.3 million in cash,
no debt and is positioning itself to achieve production startup from the North Sea properties.

The Company is currently undertaking an intensive effort to farm-out or sell a portion of its UK high

working interest assets to reduce operational risk and fund the required production infrastructure. A Field
Development Plan ("FDP") for the Fyne Field is currently being constructed and is expected to be submitted
in the first half of 2010.

Antrim acquired interests in blocks in the 25th bid round that surround the Fyne Field. Antrim continues to
evaluate and develop an exploration strategy for these recently acquired licences. The Company has
identified drilling targets on these blocks, which if successful, could be tied in to a future Fyne
production infrastructure. Some of these additional targets are undeveloped oil discoveries drilled by
previous operators. Antrim holds 100% interest in each of these new licences. Antrim estimates the range
of total risked prospective resources on these licences to be 29.7 million barrels ("MMbbls") (low
estimate), 54.9 MMbbls (best estimate) and 105.5 MMbbls (high estimate). These prospective resources have
been risked for chance of discovery but not for chance of development. If a discovery is made, there is no
certainty that it will be developed, or if it is developed, there is no certainty as to the timing of such
development.

In Argentina, commodity prices continue to rise, providing the company with renewed confidence in the
region. Antrim has identified eight wells targeting gas bearing reservoirs in Tierra del Fuego, which are
being considered for drilling in 2010. This along with increases in pipeline capacity in the latter half of
2010 should allow Antrim Argentina to exit 2010 with 20% higher production rates of approximately 2,500
boed.

Financial and Operating Results (unaudited)

Three Months Ended Nine Months Ended
September 30 September 30

----------------------------------------------------------------------------------------------------------- Financial Results ($000's except per share amounts)
Revenue 4,236 3,338 9,581 9,383
Cash flow from operations (1) 744 886 311 1,339
Cash flow from operations per share (1) 0.01 0.01 0.00 0.01
Net (loss) (1,751) (1,507) (6,489) (5,879)
Net (loss) per share - basic (0.01) (0.01) (0.05) (0.05)
Total assets 287,794 328,911 287,794 328,911
Working capital 33,725 49,671 33,725 49,671
Expenditures on petroleum and natural gas
properties 1,052 32,939 5,330 85,191
Debt - - - -

Common shares Outstanding (000's)
End of period 135,281 135,054 135,281 135,054
Weighted average - basic 135,281 132,489 135,281 122,629
Weighted average - diluted 135,281 132,489 135,281 122,629

Production Oil, natural gas and NGL production (boe per day)
(2) 2,011 1,358 1,790 1,418
(1) This is a non-GAAP measure (see MD&A)
(2) The boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the wellhead.

United Kingdom - Blocks 21/28a, 21/24b, 21/24c, 21/28b and 21/29c ("Greater Fyne Area")
The Greater Fyne Area, which includes the recently acquired surrounding blocks, has rapidly developed into
Antrim's core operational area in the UK. An FDP for the 20 million barrel (gross) Fyne Field block
(21/28a) is being prepared. Production systems and an export route are currently under evaluation
including production through existing infrastructure located between 7 and 21km from the Fyne Field or the
deployment of an independent floating production storage and offloading system ("FPSO"). The Fyne Field
forms the core of this group of Antrim owned and operated licences in the Central North Sea including
several licences awarded in the recent UK 25th Seaward Licensing Round (blocks 21/24b, 21/24c, 21/28b and
21/29c).

As previously announced, Antrim has completed its internal resource estimates for these additional licences.
Antrim holds 100% interest in these licences and has estimated the range of total risked prospective
resources to be 29.7 MMbbls (low estimate), 54.9 MMbbls (best estimate) and 109.9 MMbbls (high estimate).
These prospective resources are risked for chance of discovery but not for chance of development. If a
discovery is made, there is no certainty that it will be developed, or if it is developed there is no
certainty as to the timing of such development.

Antrim is continuing the work program on the four blocks awarded in the Licensing Round. The Company is
purchasing 3D seismic data over each of the licences and plans to selectively process this seismic data to
further evaluate the three existing undeveloped discoveries as well as the identified prospects. Antrim
will apply the experience gained in the Fyne Field to evaluate these blocks for Tay Sandstone reservoir
potential as well as deeper oil targets.

United Kingdom - Block 211/22a South East and Block 211/23d ("Causeway") Further reservoir engineering work has been performed on Antrim's Causeway Field including incorporating the results of recent geological and geophysical work using reprocessed Causeway 3D seismic data. Antrim's plan
is to submit a revised FDP in the first half of 2010, which would incorporate the benefits from cost
reductions it has identified.

There are no additional wells planned before oil is produced under the proposed first phase of the

development which will involve production from the 2006 discovery well 211/23d-17z supported by the pressure maintenance well 211/23d-18 drilled in 2008. Facility construction commitments will not be undertaken until
these commitments are fully funded.

Argentina - Tierra del Fuego, Austral Basin

Net production to Antrim from the Tierra del Fuego licences in the nine months ended September 30, 2009
increased 41% to 1,556 boepd compared to 1,102 boepd for the same period in 2008. Gas and natural gas

liquids ("NGL") production in the third quarter of 2009 was 8.4 mmcf/d and 64 barrels per day, respectively,
compared to 4.4 mmcf/d and 44 barrels per day in the same period in 2008.

The pipeline linking the Company's gas producing fields with the San Martin gas sales line across the
Straits of Magellan has enabled Antrim to redirect and deliver gas to the continent where higher prices are
available. The system is currently delivering 27.1 (net 7.0) million cubic feet per day (mmcf/d) to
mainland markets compared to 24.3 (net 6.3) mmcf/d at the end of the second quarter of 2009.

Net oil production in the first nine months of 2009 was 303 bopd and 300 bopd for the comparable period in
2008. In the third quarter 2009, net oil production was 323 bopd compared to 287 bopd in the same period
2008.

The 2008 drilling program in Tierra del Fuego was successful in adding reserves, future production potential
and significant value. Given the successful results of this drilling program, the Company has focused on

well completion and infrastructure improvements in 2009 to increase production through its connection to the
San Martin pipeline linking Tierra del Fuego with the mainland. In August 2009 the government owned gas
transportation company commenced work on a project to build a second gas pipeline across the Straits of
Magellan for the purpose of doubling gas deliveries from Tierra del Fuego. This project is expected to be
completed in the third quarter of 2010. In anticipation of increased access to mainland markets and upward
pressure on commodity prices, Antrim has identified eight (2.1 net) wells targeting gas bearing reservoirs
on the concession which are being considered for drilling in 2010.

Argentina - Medianera and Tres Nidos Sur, Neuquen Basin

The Medianera licence was determined uneconomic at current oil prices and in February 2009, Antrim shut-in
all production from the field. Under the terms of the Tres Nidos Sur licence, Antrim must acquire a minimum
of 50 km2 of 3D seismic and drill an exploration well by end 2009. Antrim is considering its alternatives
including the potential of deferring this commitment into 2010. Antrim has a 70% working interest in the
Tres Nidos Sur Licence.

Argentina - North West Basin

Net production to Antrim from the Puesto Guardian Licence in the first nine months of 2009 averaged 229 bopd
compared to 261 bopd for the same period in 2008. In the third quarter of 2009, production averaged 218
bopd, compared to 246 bopd in the same period in 2008. The reduction in production volumes for the third
quarter 2009 was due to three wells requiring pump and downhole equipment repairs. Antrim has a 40% working
interest in the Puesto Guardian Licence.

MANAGEMENT'S DISCUSSION AND ANALYSIS
The following management's discussion and analysis ("MD&A") of Antrim Energy Inc. ("Antrim" or the
"Company"), dated November 12, 2009, should be read in conjunction with Antrim's unaudited consolidated
financial statements for the three and nine months ended September 30, 2009 and Antrim's MD&A and audited
consolidated financial statements for the year ended December 31, 2008. The calculations of barrels of oil
equivalent (boe) are based on a conversion rate of six thousand cubic feet of natural gas to one barrel of
oil. The boe conversion ratio is based on an energy equivalency conversion method primarily applicable at
the burner tip and does not represent a value equivalency at the wellhead. Unless otherwise stated, all
dollar amounts are expressed in US dollars.

Forward-Looking Statements This MD&A and any documents incorporated by reference herein contain certain forward-looking statements and
forward-looking information, which are based on Antrim's current internal expectations, estimates,
projections, assumptions and beliefs. Forward-looking statements often, but not always are identified by

the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "targeting" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be
achieved and other similar expressions. These statements are not guarantees of future performance and
involve known and unknown risks, uncertainties and other factors that may base actual results or events to

differ materially from those anticipated in such forward-looking statements or information. Antrim believes
that the expectations reflected in those forward-looking statements and information are reasonable but no
assurance can be given that those expectations will prove to be correct and such forward-looking statement
and information included in this MD&A and any documents incorporated by reference herein should not be
unduly relied upon. Such forward-looking statements and information speak only as of the date of this MD&A
or the particular document incorporated by reference herein and Antrim does not undertake any obligation to
publicly update or revise any forward-looking statements or information, except as required by applicable
laws.

In particular, this MD&A and any documents incorporated by reference herein, contain specific forward-

looking statements and information pertaining to the following:

reference herein, Antrim has made assumptions regarding, among other things:

those set forth under "Risk Factors" in Antrim's Annual Information Form ("AIF") for the year ended December
31, 2008 and those set forth below:

Statements relating to "resources" are deemed to be forward-looking statements, as they involve the implied
assessment, based on certain estimates and assumptions, that the reserves described can be profitably
produced in the future. Many of these risk factors, other specific risks, uncertainties and material
assumptions are discussed in further detail throughout the AIF and in the M&A. Readers are specifically
referred to the risk factors described in the AIF under "Risk Factors" and in other documents Antrim files
from time to time with securities regulatory authorities. Copies of these documents are available without

charge from Antrim or electronically on the internet on Antrim's SEDAR profile at www.sedar.com.
In accordance with AIM guidelines, Mr. Kerry Fulton, P. Eng and Vice President, Operations for Antrim, is

the qualified person that has reviewed the technical information contained in this MD&A.
Non- GAAP Measures

Cash flow from operations, cash flow from operations per share and netback do not have standard meanings

under generally accepted accounting principles ("GAAP") and may not be comparable to those reported by other
companies. Management believes that cash flow from operations is a useful supplementary measure that may
assist investors. Cash flow from operations is defined as cash flow from operating activities before
changes in working capital. Cash flow from operations per share is calculated as cash flow from operations
divided by the weighted-average number of outstanding shares. Reconciliation of cash flow from operations
to its nearest measure prescribed by GAAP is provided below.

Calculation of Cash Flow from Operations

Three Months Ended Nine Months Ended
September 30 September 30

------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ $ Cash flow from (used in) operating
activities (18,619) (127,167) (1,178,715) 1,026,542
Increase in non-cash working capital (762,341) (1,012,836) (1,489,758) (312,311)

------------------------------------------------------------------------------------------------
Cash flow from operations 743,722 885,669 311,043 1,338,853

------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------
Financial and Operating Review

Oil, Natural Gas and NGL Revenue and Production

Revenue

Revenue from the sale of oil, natural gas and NGL for the three and nine month periods ended September 30,
2009 and 2008 consisted of the following:

Three Months Ended Nine Months Ended
September 30 September 30

------------------------------------------------------------------------------------------------ ($000's)
Oil 2,846 2,707 6,119 7,240
Natural gas 1,248 466 3,218 1,337
NGL's 142 165 244 806

------------------------------------------------------------------------------------------------ Total Oil, Natural gas and NGL
Revenue 4,236 3,338 9,581 9,383

------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------
Revenue increased in the third quarter of 2009, as compared to the same period in 2008, due to the sale of
oil inventory from the second quarter, higher gas prices and gas production partially offset by lower oil
production. In the nine months ended September 30, 2009, as compared to the same period in 2008, revenue
increased because of higher gas production and prices received offset by lower oil and NGL production and
lower oil and NGL prices.

The sale of crude oil from Tierra del Fuego can be impacted by intermittent shipments. Due to a ship delay
in June, all of the second quarter production from Tierra del Fuego was sold in July 2009. ?s at June 30,
2009, Antrim held 33,900 (2008 - 25,700) barrels of oil in inventory, the majority of which related to
Tierra del Fuego. A second delivery in early September reduced inventory to 16,200 (2008-18,600) barrels of
oil as at September 30, 2009.

Net revenue after royalties and export taxes increased to $8.3 million for the nine months ended September
30, 2009 compared to $8.0 million for the same period in 2008. For the three months ended September 30,
2009, net revenue after royalties and export taxes was $3.6 million, compared to $2.9 million for the same
period in 2008.
Production

The following table provides a comparative analysis of average daily production of oil, natural gas and NGL
for the three and nine month periods ended September 30, 2009 and 2008.

Three Months Ended Nine Months Ended
September 30 September 30

------------------------------------------------------------------------------------------------
Oil (bbl/day) 541 582 536 616
Natural gas (mmcf/day) 8.4 4.4 7.2 4.4
NGL (bbl/day) 64 44 50 62

------------------------------------------------------------------------------------------------
Total Production (boe/day) 2,011 1,358 1,790 1,418

------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------
Gas production increased in the three and nine month periods ended September 30, 2009, as compared to the
same periods in 2008, due to the successful drilling program in Tierra del Fuego and tie-ins into the San
Martin pipeline. For both the three and nine months ended September 30, 2009, the decrease in oil
production was due to the shut-in of Medianera production in February 2009, three wells in Puesto Guardian
requiring pump and equipment repairs and natural reservoir decline, as compared to the same periods in 2008.
NGL production was curtailed during the first and second quarters due to unscheduled repairs to the
refrigeration unit at the San Luis gas plant in Tierra del Fuego. The gas plant returned to operations in
June 2009.

Oil prices averaged $38.67 per barrel in the nine month period ended September 30, 2009 compared to $43.30
per barrel in 2008. For the third quarter 2009, oil prices averaged $42.18 per barrel compared to $45.00
for the same period in 2008.

Oil production from both the Puesto Guardian and Tierra del Fuego concessions is sold with reference to the
price of West Texas Intermediate ("WTI") crude oil less a quality discount. Domestic oil sales are subject
to a mandated discount which increases as the price of the WTI crude oil increases. In November 2007,
changes to the export tax effectively limited the maximum price that producers could receive for crude oil
exports to $42 per barrel, regardless of the price of WTI. The application of the mandated discount on
domestic oil sales results in a similar ceiling, after quality adjustments, in the domestic market. Oil
production from the Tierra del Fuego concessions is stored and periodically transported by ship to a
refinery on the mainland.

Antrim's sales gas prices in Argentina averaged $1.49 and $1.50 per mcf in the three and nine month periods
ended September 30, 2009 compared to $0.95 and $0.90 per mcf for the same periods in 2008. The
commissioning of the San Martin pipeline in September 2008 allowed Antrim to sell a higher proportion of its
gas production to higher priced industrial markets on the mainland instead of the Tierra del Fuego
residential market with its fixed price of $0.36 per mcf.

NGL prices, before export taxes, averaged $37.86 per barrel in the nine months ended September 30, 2009
compared to $47.44 per barrel for the comparable period in 2008. For the third quarter 2009, NGL prices
averaged $42.65 per barrel compared to $41.29 for the same period in 2008. NGL prices rose in the third
quarter 2009 due to an increase in the NGL reference price combined with a larger portion of NGL being
exported to higher priced markets in Chile.

Royalties and Export Tax

The following table provides a comparative analysis of royalty and export tax expenses for the three and
nine month periods ended September 30, 2009 and 2008.

Three Months Ended Nine Months Ended
September 30 September 30

------------------------------------------------------------------------------------------------ ($000's)
Royalties 596 384 1,237 1,162
Percentage of Total revenue 14.1 11.5 12.9 12.4

------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------
Export tax 50 78 72 261
Percentage of NGL revenue 35.3 47.3 29.7 32.4

------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------

Export taxes, as a percentage of NGL revenue, decreased in 2009 compared to 2008 as exports to Chile were
curtailed for much of 2009 due to restrictions in obtaining export permits.

Netbacks

The following table provides a comparative analysis of field netbacks, based on sales, for the three and
nine month periods ended September 30, 2009 and 2008.

Three Months Ended Nine Months Ended
September 30 September 30

------------------------------------------------------------------------------------------------ $/boe
Wellhead price 21.17 25.37 19.42 24.25
Royalties (2.98) (2.92) (2.51) (3.00)
Export tax (0.25) (0.59) (0.15) (0.68)
Operating expenses (9.11) (8.61) (10.04) (9.06)

------------------------------------------------------------------------------------------------
Netback 8.83 13.25 6.72 11.51

------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------
Oil, Natural gas and NGL sales (boe) 200,098 131,567 493,448 386,872
Oil, Natural gas and NGL sales (boepd) 2,175 1,430 1,808 1,412

------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------

The decrease in netbacks for the three and nine month periods ended September 30, 2009, compared to the
corresponding periods in 2008 is primarily due to lower oil and NGL prices, lower export taxes and higher
operating expenses partially offset by higher gas prices. In 2009, Antrim changed the classification of
administrative costs charged from field operators. In the first nine months of 2009, $0.6 million ($1.27
per boe) was recorded as operating expenses. For the comparable period in 2008, $0.5 million was recorded

as general administrative expense.
While 2009 also benefited from the reduction in export taxes, the export tax reduction was more than offset

by lower wellhead prices and increased operating costs attributed to higher personnel and land rental costs.
General and Administrative

General and administrative ("G&A") costs decreased in the first three quarters of 2009 to $4.1 million
compared to $5.8 million for the comparable period in 2008. The reduction in G&A is a result of lower

salaries and bonus expense combined with the reclassification of Argentina administrative costs charged from
field operators to operating expenses. During the nine month period of 2009, Antrim capitalized $0.6
million (2008 - $2.1 million) of G&A costs related to exploration and development activity in Argentina and
United Kingdom.

Depletion and Depreciation

Depletion and depreciation expense was $4.4 million for the first three quarters of 2009 compared to $3.6
million in 2008. The consolidated per unit charge for the first nine months of 2009 was $9.03 per boe
compared to $9.21 per boe in the same period of 2008. No depletion was recorded with respect to the $222
million of United Kingdom assets as they are classified as unproven properties. Depletion of these assets
will commence with production.

Foreign Exchange Loss and Comprehensive (Loss) Income
A significant portion of the Company's activities are transacted in or referenced to US dollars, Canadian
dollars, British pounds sterling or Argentine pesos. The Company's operating costs and certain of the
Company's payments in order to maintain property interests are to be in the local currency of the
jurisdiction where the applicable property is located. As a result, fluctuations in the Canadian dollar,
British pounds sterling and Argentine peso against the US dollar, and each of those currencies against any
other local currencies in jurisdictions where properties of the Company are located, could result in
unanticipated fluctuations in the Company's financial results which are denominated in US dollars. The
Canadian dollar and British pounds sterling exchange rates strengthened while the Argentine peso exchange
rate weakened relative to the US dollar during the first nine months of 2009.

The Company incurred a foreign exchange gain of $29,246 for the nine months ended September 30, 2009
compared to a gain of $193,191 in the same period in 2008.

Effective January 1, 2009, the Company changed the functional currency for its operations in Argentina from
Canadian dollars to Argentine pesos. Recent operational events in Argentina, with the tie-in of gas
production in Tierra del Fuego resulted in the business becoming a self sustaining entity. On a prospective
basis, the Company has adopted the current rate method for foreign exchange translation for its Argentina
operations. Under the current rate method all balance sheet items are translated at the balance sheet date
exchange rate and revenue and expense items at the exchange rate in effect at the date of the transaction.
The resulting foreign exchange gain or loss is reported as an unrealized gain (loss) in comprehensive income
(loss). The remaining operations of Antrim have the Canadian dollar as the functional currency. Assets and
liabilities are translated into the reporting currency at the period end exchange rates and the results of
changes in these rates are recorded as an unrealized gain (loss) in comprehensive income (loss).

The exchange rate for the Canadian dollar relative to the United States dollar increased from US $0.82 at
December 31, 2008 to US $0.92 at September 30, 2009 resulting in an unrealized gain on translation of the
consolidated assets and liabilities of $32.7 million for the nine months ended September 30, 2009. The

remaining $8.7 million unrealized loss on translation resulted from the exchange rate for the Argentine peso
relative to the United States dollar weakening from US $0.29 at December 31, 2008 to US $0.26 at September
30, 2009.

Cash Flow and Net Income (Loss)

In the three month period ended September 30, 2009 Antrim generated cash flow from operations of $0.7
million ($0.01 per share) compared to $0.9 million ($0.01 per share) in the same period in 2008. Cash flow
from operations was $0.3 million ($0.00 per share) in the first nine months of 2009 compared to cash flow of
$1.3 million ($0.01 per share) for the same period in 2008. Cash flow decreased for the nine month period
in 2009, as compared to 2008, primarily due to lower interest and other income and higher operating costs

offset by lower general and administrative expenses.
In the third quarter of 2009 and 2008, Antrim incurred net losses of $1.8 million and $1.5 million
respectively. For the nine months ended September 30, 2009, the Company incurred a net loss of $6.5 million
compared to $5.9 million in the same period in 2008.

Capital Expenditures

Antrim incurred capital expenditures related to petroleum and natural gas properties of $1.1 million and
$32.9 million for the third quarter of 2009 and 2008, respectively. For the nine month periods ended

September 30, 2009 and 2008, capital expenditures were $5.3 million and $85.2 million. Capital expenditures
were significantly reduced in 2009, as compared to 2008, as the drilling programs in the UK and Argentina
concluded in 2008.

Financial Resources and Liquidity
As at September 30, 2009, Antrim had working capital of $33.7 million and no debt. There were no
restrictions on the use of cash and cash equivalents at September 30, 2009. Accounts payable and accrued
liabilities decreased to $3.3 million at September 30, 2009 from $6.2 million as at December 31, 2008
primarily due to reduced capital activity.

Antrim invests cash not required for immediate operations needs in Canadian denominated short-term bankers' acceptances and money market instruments. Antrim has no exposure to asset backed commercial paper.
Although there have been improvements in the global economy and financial markets in recent months, there
continues to be restrictions on availability of credit which may limit Antrim's ability to access debt or

equity financing for its development projects. Antrim forecasts cash flows against a range of macroeconomic
and financing market scenarios in an effort to identify future commitments and arrange financing, if
necessary. The Company has reduced the time frame in projecting its future expenditures from an annual
budget to a quarterly, and, where applicable, monthly forecast process to enable Antrim to better adapt to
changing market conditions. Although Antrim may need to raise additional funds from internal or external
sources, if available, in order to develop its UK properties, the Company maintains flexibility to minimize
financial commitments on these assets.

In July 2008, Antrim entered into an agreement with the Bank of Scotland plc for a $50 million working
capital facility. The working capital facility is available, subject to certain conditions, for pre-
development costs associated with Antrim's Causeway property and for the appraisal of the Fyne and Dandy
fields. The amount available under the facility may increase as Antrim prepares, submits and receives final
approval of the Field Development Plan ("FDP") for the Causeway field. Availability under this working
capital facility is presently $10 million. The Company is required to maintain two financial covenants
being a semi-annual interest coverage ratio of 2:1 and an ongoing requirement that cash plus available
borrowings under the facility are at least equal to its planned capital expenditures for the forthcoming
three month period. No amounts have been drawn on this bank facility and Antrim has no current intention of
drawing on the facility which matures on January 18, 2010.

Antrim has various commitments, which are described more fully in Note 14 to the consolidated financial
statements. During the third quarter of 2008, Antrim made a commitment of $812,083 related to the building
and commissioning of a second gas sales pipeline across the Straits of Magellan linking gas production from
the island of Tierra del Fuego with the mainland with work commencing in August 2009. The commitment is
expected to be paid by the end of 2009.

Outlook

Antrim's strong financial position which includes unrestricted cash available of $31.3 million and no debt, provides Antrim with continued financial and operational flexibility.
Antrim maintains a high working interest and operational control of its two major UK properties and plans
to continue development of its Causeway and Fyne fields. In addition, Antrim continues to evaluate and
develop an exploration strategy for the recently acquired blocks in the Greater Fyne Area. The work program
on these blocks is continuing with the purchase and reprocessing of 3D seismic data.

Antrim is currently in the process of seeking a partner to assist in funding of its UK assests. The company
is undertaking an extensive search for an industry partner to fund the capital expenditures required to
ensure the target production start up in the UK by 2011.

In Argentina, Antrim anticipants 2009 production to average approximately 1,800 boepd. Prices for oil and
natural gas are expected to increase. Along with the twinning the gas pipeline across the Straits of

Magellan, the increase in prices has renewed Antrim's commitment to the region which includes consideration
to drill eight wells (2.1 net) in Tierra del Fuego in 2010.

Summary of Quarterly Results

($000, except per

share amounts) Oil, Natural Gas Cash Flow from
and NGL Revenue, Operations
Net of Royalties (deficiency) (Loss) Per
and Export Tax (Loss) Share - Basic

--------------------------------------------------------------------------------------------------------- 2009
Third quarter 3,590 744 (1,751) (0.01)
Second quarter 1,821 (716) (2,888) (0.03)
First quarter 2,861 283 (1,850) (0.01)

---------------------------------------------------------------------------------------------------------
Total 8,272 311 (6,489) (0.05)

--------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------- 2008
Fourth quarter 2,313 (1,032) (7,152) (0.05)
Third quarter 2,875 886 (1,507) (0.01)
Second quarter 1,849 (986) (3,564) (0.03)
First quarter 3,236 1,439 (808) (0.01)

---------------------------------------------------------------------------------------------------------
Total 10,273 307 (13,031) (0.10)

--------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------- 2007
Fourth quarter 3,297 1,060 (1,754) (0.01)
Third quarter 2,601 882 (2,260) (0.02)
Second quarter 2,830 1,720 (3,330) (0.04)
First quarter 2,422 795 (1,084) (0.01)

---------------------------------------------------------------------------------------------------------
Total 11,150 4,457 (8,428) (0.08)

--------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------
Changes in Accounting Policies

Effective January 1, 2009, the Company changed the functional currency for its operations in Argentina from
Canadian dollars to Argentine pesos. Recent operational events in Argentina, with the tie-in of gas
production in Tierra del Fuego and the deferment of additional drilling for 2009, resulted in the business
becoming a self sustaining entity. On a prospective basis, the Company has adopted the current rate method
for foreign exchange translation for the Argentina business. Under the current rate method all balance
sheet items are translated at the balance sheet date exchange rate and revenue and expense items at the
exchange rate in effect at the date of the transaction. The resulting foreign exchange gain or loss is
reported as an unrealized gain (loss) in the comprehensive income (loss).

On January 1, 2009, the Company adopted new Canadian Institute of Chartered Accountants ("CICA") Handbook
Section 3064"Goodwill and Intangible Assets" clarifying the criteria for the recognition of assets,

intangible assets and internally developed intangible assets. Adoption of this new accounting standard had no material effect on Antrim's consolidated financial statements. Conversion to International Financial Reporting Standards In February 2008, the Canadian Accounting Standards Board ("AcSB") confirmed that the mandatory changeover from existing Canadian GAAP to International Financial Reporting Standards ("IFRS") is to take effect for
financial years beginning on or after January 1, 2011. The key elements of the Company's conversion plan

include determining appropriate changes to accounting policies and disclosures, identifying and implementing
associated changes to processes and information systems, ensuring compliance to internal controls and
educating and training staff and other stakeholders. The Company has completed a diagnostic analysis of the
differences between Canadian GAAP and IFRS and is assessing the effects on its conversion plan. At this
time, the impact on the Company's financial position and results of operations is not reasonably

determinable for the accounting standards differences identified. Related Party and Off-Balance Sheet Transactions
Antrim may from time to time enter into arrangements with related parties. In the first three quarters of
2009, Antrim incurred fees of $27,661 (2008 - $220,188) payable to Burstall Winger LLP, a law firm in which
a director of the Company is a partner. The Company had no off-balance sheet transactions in the nine month
period ended September 30, 2009.

Disclosure Controls and Procedures and Internal Controls Over Financial Reporting
Antrim has established disclosure controls, procedures and corporate policies so that its consolidated
financial results are presented accurately, fairly and on a timely basis. The Chief Executive Officer and
Chief Financial Officer have designed or have caused such internal controls over financial to be designed

under their supervision to provide reasonable assurance regarding the reliability of financial reporting and
preparation of the Company's financial statements in accordance with Canadian GAAP. There were no changes
in the Company's internal controls over financial reporting that occurred during the third quarter of 2009

that have materially affected, or are reasonably likely to materially affect the Company's internal control
over financial reporting.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, these

systems provide reasonable but not absolute assurance that financial information is accurate and complete.
Risks and Uncertainties

The oil and gas industry involves a wide range of risks which include but are not limited to the uncertainty
of finding new commercial fields, securing markets for existing reserves, commodity price fluctuations,
exchange and interest rate costs and changes to government regulations, including regulations relating to
prices, taxes, royalties, land tenure, allowable production and environmental protection. The oil and
natural gas industry is intensely competitive and the Company competes with a large number of companies that
have greater resources.

The availability of equity or debt financing is affected by many factors, many of which are outside the
controls of the Company. Recent world financial market events and the resultant negative impact on economic

conditions have increased the risk and uncertainty of the availability of equity or debt financing.
Further discussions regarding the Company's risks and uncertainties, can be found in the December 31, 2008
Management's Discussion and Analysis and the Annual Information Form dated March 30, 2009 which are filed on
SEDAR at www.sedar.com.

Stephen Greer
President and Chief Executive Officer
November 12, 2009

Antrim Energy Inc. Consolidated Balance Sheets As at September 30, 2009 and December 31, 2008 (unaudited)

$ $

Assets Current assets
Cash and cash equivalents 31,283,888 35,337,007
Accounts receivable 4,622,449 5,186,806
Inventory and prepaid expenses (note 4) 1,087,324 945,363

36,993,661 41,469,176
Petroleum and natural gas properties (note 5) 247,907,983 226,968,744
Office equipment (note 6) 496,536 556,826
Future income taxes (note 11) 504,976 348,006
Investments and other non-current assets 1,890,442 2,018,697

287,793,598 271,361,449

Liabilities

Current liabilities
Accounts payable and accrued liabilities 3,269,142 6,201,849

3,269,142 6,201,849
Asset retirement obligations (note 7) 11,504,944 9,913,898

14,774,086 16,115,747

Commitments and contingencies (note 14)

Shareholders' Equity
Capital stock (note 8) 311,913,860 311,927,578
Contributed surplus (note 9) 14,866,141 11,664,179
Deficit (43,516,202) (37,027,268)

Accumulated other comprehensive income (loss) (note 10) (10,244,287) (31,318,787)

273,019,512 255,245,702

287,793,598 271,361,449

Antrim Energy Inc. Consolidated Statements of Income (Loss) and Deficit For the Periods Ended September 30, 2009 and 2008 (unaudited)

Three Months Ended Nine Months Ended
September 30 September 30

$ $ $ $

Revenue
Oil and gas 4,236,161 3,337,690 9,581,360 9,383,020
Royalties (595,886) (384,341) (1,236,982) (1,161,720)
Export tax (50,327) (77,778) (72,497) (261,414)

3,589,948 2,875,571 8,271,881 7,959,886
Interest and other income 613,477 815,267 1,442,887 2,727,775

4,203,425 3,690,838 9,714,768 10,687,661

Expenses
Operating 1,823,486 1,132,492 4,956,551 3,504,459
General and administrative 1,306,950 1,573,076 4,069,057 5,832,356
Stock-based compensation 676,412 1,491,928 2,468,364 3,853,401
Depletion and depreciation 1,737,660 1,155,576 4,410,534 3,577,703

Accretion of asset retirement
obligations 156,702 268,581 435,130 797,526
Foreign exchange (gain) loss 255,257 (67,816) (29,246) (193,191)

5,956,467 5,553,837 16,310,390 17,372,254

Loss for the period before income
taxes (1,753,042) (1,862,999) (6,595,622) (6,684,593)

Income tax expense (recovery)
Current 4,503 3,158 81,532 39,795
Future (6,112) (358,768) (188,220) (845,298)

(1,609) (355,610) (106,688) (805,503)

Net Loss for the period (1,751,433) (1,507,389) (6,488,934) (5,879,090)
Deficit - Beginning of period (41,764,769) (28,367,927) (37,027,268) (23,996,226)

Deficit - End of period (43,516,202) (29,875,316) (43,516,202) (29,875,316)

Net loss per common share
Basic (0.01) (0.01) (0.05) (0.05)
Diluted (0.01) (0.01) (0.05) (0.05)

Antrim Energy Inc. Consolidated Statements of Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) For the Periods Ended September 30, 2009 and 2008 (unaudited)

Three Months Ended Nine Months Ended
September 30 September 30

$ $ $ $

Net loss for the period (1,751,433) (1,507,389) (6,488,934) (5,879,090)

Comprehensive income (loss) Unrealized (loss) gain on translation of consolidated financial statements (note 10) 14,363,044 (7,012,363) 24,013,129 (14,951,246)

Comprehensive income (loss) 12,611,611 (8,519,752) 17,524,195 (20,830,336)

Accumulated other comprehensive income (loss) (24,607,331) 21,955,252 (31,318,787) 29,894,135

(note 2) Other comprehensive (loss)
income (note 10) 14,363,044 (7,012,363) 24,013,129 (14,951,246)

Accumulated other comprehensive income (loss) (10,244,287) 14,942,889 (10,244,287) 14,942,889

Antrim Energy Inc. Consolidated Statements of Cash Flows For the Periods Ended September 30, 2009 and 2008 (unaudited)
Three Month Ended Nine Months Ended
September 30 September 30

$ $ $ $

Cash Provided by (used in) Operating Activities
Net loss for the period (1,751,433) (1,507,389) (6,488,934) (5,879,090)

Items not involving cash:
Depletion and depreciation 1,737,660 1,155,576 4,410,534 3,577,703
Accretion of asset retirement obligations 156,702 268,581 435,130 797,526
Stock-based compensation expense 676,412 1,491,928 2,468,364 3,853,401
Foreign exchange (gain) loss (69,507) (164,259) (325,831) (165,389)
Future income taxes (6,112) (358,768) (188,220) (845,298)

743,722 885,669 311,043 1,338,853

Change in non-cash working capital items
(note 12) (762,341) (1,012,836) (1,489,758) (312,311)

(18,619) (127,167) (1,178,715) 1,026,542

Financing Activities
Issue of common shares - 51,164,183 (6,859) 51,552,104
Share issue expense - (2,564,108) - (2,590,403)

- 48,600,075 (6,859) 48,961,701

Investing Activities
Office equipment (34,075) (50,099) (108,525) (446,284)
Petroleum and natural gas properties (1,051,706) (32,939,111) (5,330,470) (85,191,340)
Restricted cash - 25,620,042 - 4,499,461
Other non-current assets (127,190) (218,633) (110,384) (865,937)

Change in non-cash working capital items
(note 12) 36,559 (18,645,913) (1,029,048) (14,134,154)

(1,176,412) (26,233,714) (6,578,427) (96,138,254)

Effect of exchange rate changes on cash and
short term deposits (111,422) (568,534) (1,225) (292,289)

Net effect of foreign exchange translation on
cash flow 1,952,741 (714,110) 3,712,107 (3,399,803)

Net (decrease) increase in cash and cash
equivalents 646,288 20,956,550 (4,053,119) (49,842,103)

Cash and cash equivalents - Beginning of
period 30,637,600 27,995,424 35,337,007 98,794,077

Cash and cash equivalents - End of period 31,283,888 48,951,974 31,283,888 48,951,974

Antrim Energy Inc. Notes to Consolidated Financial Statements For the Periods Ended September 30, 2009 and 2008 (unaudited)

1. BASIS OF PRESENTATION

These unaudited interim financial statements have been prepared by management in accordance with Canadian generally accepted accounting principles ("Canadian GAAP"). The unaudited interim financial statements were prepared using the same accounting policies and should be read in conjunction with the audited financial statements as at and for the year ended December 31, 2008. The Company changed its reporting currency from Canadian dollars (Cdn $) to United States (US $ or $) effective January 1, 2008 and all amounts are reported in US $ except as otherwise noted.

Certain comparative figures have been reclassified to conform to the presentation adopted in the current period.

2. CHANGES IN ACCOUNTING POLICIES

Change in Functional currency

Effective January 1, 2009, the Company changed its functional currency from Canadian dollars (Cdn $) to Argentine pesos (ARS) for its Argentina subsidiary, as the Company considers the subsidiary self sustaining and anticipates that the majority of its future income stream and expenditures will be denominated in ARS. The change was made on a prospective basis and as a result of the change, the Company recorded an adjustment to opening accumulated other comprehensive income (loss) of $2.9 million as at January 1, 2009.

The functional currency of the parent company and all of its other subsidiaries continues to be Canadian dollars.

Other Changes

Effective January 1, 2009 the Company adopted CICA Section 3064 "Goodwill and Intangible Assets" clarifying the criteria for the recognition of assets, intangible assets and internally developed intangible assets. Adoption of this new accounting standard has no material effect on Antrim's consolidated financial statements.

3. UPCOMING ACCOUNTING PRONOUNCEMENTS

In February 2008, the Canadian Accounting Standards Board ("AcSB") confirmed that the mandatory changeover from existing Canadian GAAP to International Financial Reporting Standards (IFRS") is to take effect for financial years beginning or on after January 1, 2011. The key elements of the Company's conversion plan include determining appropriate changes to accounting policies and disclosures, identifying and implementing associated changes to processes and information systems, ensuring compliance to internal controls and educating and training staff and other stakeholders. The Company has completed a diagnostic analysis of the differences between Canadian GAAP and IFRS and is assessing the effects on its conversation plan. At this time, the impact on the Company's financial position and results of operations is not reasonably determinable for the accounting standards differences indentified.

4. INVENTORY AND PREPAID EXPENSES

Inventory and prepaid expense at September 30, 2009 include $230,620 (2008 - $579,836) of crude oil that has been produced but not sold. Inventories of crude oil are valued at the lower of average cost and net realizable value.

5. PETROLEUM AND NATURAL GAS PROPERTIES
September 30, 2009

Accumulated
depletion and
Cost depreciation Net book value
$ $ $

Argentina 49,624,371 23,252,383 26,371,988
United Kingdom 224,465,865 2,929,870 221,535,995

274,090,236 26,182,253 247,907,983

December 31, 2008

Accumulated
depletion and
Cost depreciation Net book value
$ $ $
Argentina 52,735,538 19,276,107 33,459,431
United Kingdom 196,439,183 2,929,870 193,509,313

249,174,721 22,205,977 226,968,744

During the period, the Company capitalized $574,958 (2008 - $2,109,329) of general and administrative and $733,598 (2008 - nil) of stock-based compensation costs related to exploration and development activity. At September 30, 2009, petroleum and natural gas properties include $221,535,995 (2008 - $227,921,049) relating to unproven properties that have been excluded from the depletion calculation.

6. OFFICE EQUIPMENT

Office equipment of $496,536 (2008 - $556,826) is net of accumulated depreciation of $1,178,952 (2008 - $1,090,513).

7. ASSET RETIREMENT OBLIGATIONS

At September 30, 2009, the estimated undiscounted asset retirement obligations are $2,654,588 (2008 - $2,870,854) and $27,915,595 (2008 - $28,853,413) for Argentina and United Kingdom, respectively. The Company expects the majority of the asset retirement obligations to be payable after 2023. The present value of the asset retirement obligations has been calculated using credit adjusted risk free rates of between 7.9% and 11.0% (2008 - 7.9% and 9.0%) and an inflation rate of 2.0% (2008 - 2.0%) .

Changes to asset retirement obligations were as follows:
September 30, December 31,

$ $

Asset retirement of obligations, beginning of period 9,913,898 9,650,649
Accretion expense 435,130 870,856
Increase in liabilities - 2,893,189
Change in estimated future cash flows - (976,725)
Foreign currency translation 1,155,916 (2,524,071)

Asset retirement obligations, end of period 11,504,944 9,913,898

8. CAPITAL STOCK Authorized Unlimited number of common voting shares Unlimited number of preferred shares Common shares issued
Number of Amount
Shares $

Balance - December 31, 2007 117,581,389 262,600,117
Bought deal financing 17,130,000 51,093,584
Employee share ownership plan 396,727 346,261
Exercise of stock options 214,000 332,955
Contributed surplus on exercise of stock options - 150,708
Share issue costs - (2,596,047)

Balance - December 31, 2008 135,322,116 311,927,578

Employee share ownership plan (41,011) (13,718)

Balance - September 30, 2009 135,281,105 311,913,860

In July 2008, the Company issued 16,130,000 common shares at a price of Cdn $3.10 per common share for gross proceeds of Cdn $50,003,000. In August 2008, an over-allotment option was partially exercised for an additional 1,000,000 common shares at a price of Cdn $3.10. Total gross proceeds from the financing, including over-allotment option, were Cdn $53,103,000.

On December 31, 2008, the Company issued 41,011 common shares under the employee share ownership plan in excess of the amount of common shares authorized for this purpose by the Toronto Stock Exchange. These common shares were subsequently retracted by the Company and the total shares issued and outstanding was reduced by 41,011.

Stock options

The Company has established a stock option plan whereby the Company may grant options to its directors, officers, employees and consultants for up to 10% of the issued and outstanding number of common shares. The exercise price of each option is no less than the market price of the Company's stock on the date of grant. Stock option terms are determined by the Company's Board of Directors but typically vest evenly over a period of three years from the date of grant and expire five years after the date of grant.

Pursuant to the Company's stock option plan, as at September 30, 2009 there were 11,503,398 options outstanding to purchase Common share at prices ranging from $0.31 Cdn to $6.95 Cdn.

A summary of the status of the Company's stock option plan is presented below:

September 30, 2009 December 31, 2008

Weighted Weighted

Outstanding - Beginning of period 13,015,731 2.63 7,829,731 3.08
Granted 550,000 0.39 5,675,000 2.02
Expired/Cancelled (2,062,333) 2.78 (275,000) 4.40
Exercised - - (214,000) 1.41

Outstanding - End of period 11,503,398 2.50 13,015,731 2.63

Options Exercisable - End of period 4,779,083 2.83 4,370,421 1.68

Stock-Based Compensation Costs

The Company measures all stock-based compensation using the fair value method of accounting and recognizes the results as compensation expense in the financial statements. Stock-based compensation costs are recognized over the vesting period of the stock options granted. Stock-based compensation costs for the periods ended September 30, 2009 and 2008 were $2,468,364 and $3,853,401 respectively.

Options totaling 550,000 were granted during the nine month period ended September 30, 2009. The options granted had an estimated weighted-average fair value of $0.36 per option. The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: Risk free interest rate - 2.2% (2008 - 3.2%); expected life - 4.5 years (2008 - 4.5 years); expected volatility - 158.0% (2008 - 65.5%); expected dividend yield - nil (2008 - nil).

Per Share Information

In calculating basic and diluted net loss per common share amounts, the following weighted average shares were used:

September 30, September 30,

Number of Shares Number of shares

Weighted average number of shares outstanding 135,281,105 122,628,766
Exercisable stock options - -

Diluted average number of shares outstanding 135,281,105 122,628,766

Exercisable stock options of 4,779,083 at September 30, 2009 have been excluded from the diluted average number of shares outstanding, as they are anti-dilutive.

9. CONTRIBUTED SURPLUS

September 30, December 31,

$ $

Balance - beginning period 11,664,179 6,706,403
Stock-based compensation expense 3,201,962 5,108,484
Transfer to share capital on exercise of stock options - (150,708)

Balance - end of period 14,866,141 11,664,179

10. OTHER COMPREHENSIVE INCOME

The consolidated assets and liabilities are translated from their functional currencies to the United States dollar reporting currency at the period end exchange rates and the results of changes in these rates are recorded as an unrealized gain (loss) in comprehensive income (loss) and accumulated comprehensive income (loss).

The exchange rate for the Canadian dollar relative to the United States dollar increased from US $0.82 at December 31, 2008 to US $0.92 at September 30, 2009 resulting in an unrealized gain on translation of the consolidated assets and liabilities of $32,738,774.

Effective January 1, 2009 the Company changed its functional currency for its Argentine subsidiary to the Argentine peso from the Canadian dollar. As a result of this change, and due to the weakening of the Argentine peso from Cdn $0.35 at December 31, 2008 to Cdn $0.28 at September 30, 2009, Antrim recorded an unrealized loss of $(8,725,645).

The exchange rate for the Canadian dollar relative to the United States Dollar declined from US $1.02 at December 31, 2007 to US $0.96 at September 30, 2008 resulting in an unrealized loss on translation of the consolidated assets and liabilities of $(14,951,246).

11. INCOME TAXES

The components of the Company's net future income tax asset are as follows:

September 30, December 31,

$ $

Future income tax asset:
Tax basis of liabilities below carrying value 504,976 348,006

Net future income tax asset 504,976 348,006

The Company incurred losses in several of the countries that it operates in. No accounting recognition has been given to the losses as there is uncertainty with respect to the ability to generate sufficient taxable income to utilize the losses.

12. SUPPLEMENTAL CASH FLOW INFORMATION

Three Months Ended Nine Months Ended
September 30 September 30

$ $ $ $

Operating Activities: (Increase) decrease in current assets:
Accounts receivable (643,614) (791,636) (67,651) (456,926)

Inventory and prepaid
expenses 344,355 28,931 (63,552) (419,558)

Increase (decrease) in current liabilities: Accounts payable and accrued
liabilities (463,082) (299,530) (1,351,696) 438,608

Employee share ownership plan
contribution - 49,399 (6,859) 125,565

(762,341) (1,012,836) (1,489,758) (312,311)

Investing activities: (Decrease) in current assets:
Accounts receivable 540,404 (231,202) 559,636 (212,882)

Increase (decrease) in current liabilities: Accounts payable and accrued
liabilities (503,845) (18,414,711) (1,588,684) (13,921,272)

36,559 (18,645,913) (1,029,048) (14,134,154)

Interest received 52,779 452,849 116,722 1,899,193
Income taxes paid 4,503 3,158 81,532 39,795

13. SEGMENTED INFORMATION
September 30,

Identifiable
Revenue (Loss) Assets
Three Months Nine Months Three Months Nine Months
Ended Ended Ended Ended As at
$ $ $ $ $
Canada - - (1,349,079) (4,543,071) 26,490,766
Argentina 4,236,161 9,581,360 305,465 (605,271) 36,069,335

United
Kingdom - - (707,819) (1,340,592) 225,233,497

Total 4,236,161 9,581,360 (1,751,433) (6,488,934) 287,793,598

September 30,

Identifiable
Revenue (Loss) Assets

Three Months Nine Months Three Months Nine Months
Ended Ended Ended Ended As at
$ $ $ $ $

Canada - - (944,324) (3,775,677) 45,187,066
Argentina 3,337,690 9,383,020 322,509 31,932 49,526,556

United
Kingdom - - (885,574) (2,135,345) 234,197,820

Total 3,337,690 9,383,020 (1,507,389) (5,879,090) 328,911,442

14. COMMITMENTS AND CONTINGENCIES

The Company has the following commitments in respect of its oil and gas properties:

United Kingdom - Fyne and Dandy

The Company acquired a 75% working interest in Block 21/28a in 2006 for $8 million. On approval of a Field Development Plan, the Company has agreed to pay an additional $10 million as part of the acquisition cost of the block.

United Kingdom - South Larne

Under the terms of the Petroleum Prospecting Licence and the Minerals Prospecting Licence, Antrim was required to decide to drill or drop the licence by December 31, 2008. The Company received a one year extension to the licences on the drill or drop date from the Northern Ireland Department of Enterprise, Trade & Investment.

Argentina - Tres Nidos Sur

The Company acquired a 70% working interest in the Tres Nidos Sur Block in October 2007. Under the terms of the licence, the joint venture is required to acquire a minimum of 50 km(2) of 3D seismic and drill an exploration well by December 2009. Required permitting and environmental studies for the 3D seismic acquisition are underway.

Argentina - Tierra del Fuego

The Company made a commitment of $812,083 related to the building and commission of a second gas sales pipeline across the Straits of Magellan linking gas production from the island of Tierra del Fuego with the Argentina mainland. The company paid $178,091 of this commitment as of September 30, 2009 with the remaining amount to be paid in the fourth quarter of 2009. The company will receive interest bearing debt securities as consideration for the payments.

In addition to commitments in respect of its oil and gas properties, the Company is committed to payments under operating leases for office space, net of sub-lease arrangements, for the next five years as follows:

Year $

-------------------------------------------------
2009 193,635
2010 122,070
2011 102,646
2012 102,646
2013 102,646

-------------------------------------------------
623,643

------------------------------------------------- -------------------------------------------------

15. FINANCIAL AND CAPITAL MANAGEMENT

The Company's objective when managing its capital is to maintain adequate levels of funding to support its exploration and development program and provide flexibility in the future development of its business. Historically the Company raised all of its capital requirements from internally generated cash flow and by the issuance of common shares and securities exchangeable for common shares. The Company's capital structure at September 30, 2009 consists entirely of common share capital. The Company had no bank debt at September 30, 2009.

Current restrictions on availability of credit may limit the Company's ability to access debt or equity financing for its development projects. The Company forecasts cash flows against a range of macroeconomic and financing market scenarios in an effort to identify future liabilities and arrange financing, if necessary. The Company has reduced the time frame in projecting its future expenditures from an annual budget to a quarterly and, where applicable, monthly forecast process. This reduction in the time horizon will allow the Company to better adapt to changing market conditions. Although the Company may need to raise additional funds from outside sources, if available, in order to develop its UK properties, the Company maintains flexibility to minimize financial commitments on these assets.

In July 2008, Antrim entered into an agreement with the Bank of Scotland plc for a $50 million working capital facility. The working capital facility is available, subject to certain conditions, for pre-development costs associated with the Company's Causeway property and for the appraisal of the Fyne and Dandy fields. The amount available under the facility may increase as the Company prepares submits and receives final approval of a field development plan for Causeway Field. Availability under this working capital facility is presently $10 million. The Company is required to maintain two financial covenants being a semi-annual interest coverage ratio of 2:1 and an ongoing requirement that cash plus available borrowings under the facility are at least equal to its planned capital expenditures for the forthcoming three month period. No amounts have been drawn on this bank facility and Antrim has no current intention on drawing on the facility which matures on January 18, 2010.

16. FINANCIAL INSTRUMENTS AND FINANCIAL RISKS

Financial instruments

Financial assets and financial liabilities are initially recognized at fair value and are subsequently accounted for based on their classification. The classification categories, which depend on the purpose for which the financial instruments were acquired and their characteristics, include held-for-trading, available-for-sale, held-to-maturity, loans and receivables, investments, and other liabilities. Except in very limited circumstances, the classification is not changed subsequent to initial recognition.

The Company's financial instruments consist of cash, short-term deposits, accounts receivable, other non-current assets and accounts payable. Cash and short-term deposits are categorized as held-for-trading and are accounted for at fair value with the change in fair value recognized in net income during the period. Accounts receivable and other non-current assets are classified as loans and receivables and are accounted for at amortized cost. Accounts payable are classified as other liabilities and are accounted for at amortized cost. Due to the short-term maturity of the Company's financial instruments, fair vales approximate carrying amounts.

Financial risks

The Company is exposed to financial risks encountered during the normal course of its business. These financial risks are composed of credit risk, liquidity risk, and market risk including commodity price and foreign currency exchange risks.

a) Credit risk

The Company is exposed to the risk that its counterparties will fail to discharge their obligations to the Company on its cash, cash equivalents and accounts receivable.

Cash, cash equivalents and restricted cash are on deposit with reputable Canadian and international banks, and therefore the Company does not believe these financial instruments are subject o material credit risk. All oil and gas production is from two properties in Argentina. The majority of one property's production is sold to three purchasers while the other property's production is sold to a single purchaser. Factors included in the assessment of accounts receivable for impairment are the relationship between the purchasers and the Company and the age of the receivable. As at September 30, 2009, the Company has provided for an allowance for doubtful accounts that is not material.

The Company's maximum exposure to credit risk at September 30, 2009 is equal to the carrying amount of cash, cash equivalents, restricted cash and accounts receivable on the Company's balance sheet on that date.

b) Liquidity risk

The Company is exposed to liquidity risk from the possibility that it will encounter difficulty meeting its financial obligations. The Company manages this risk by forecasting cash flows in an effort to identify future liabilities and arrange financing, if necessary. It may take many years and substantial cash expenditures to pursue exploration and development activities on all of the Company's existing undeveloped properties. Accordingly, the Company may need to raise additional funds from outside sources in order to explore and develop its properties. There is no assurance that adequate funds from debt and equity markets will be available to the Company in a timely manner.

c) Market Risk

Market risk consists of commodity price risk and foreign currency exchange risk.

Commodity price risk

Currently all of the Company's oil and gas revenue is from oil and gas properties in Argentina. Oil prices in Argentina are subject to mandated domestic market discounts, which results in prices significantly below benchmark prices. Oil exports from Argentina are subject to export taxes which effectively limit the maximum price that producers could receive for crude oil exports to $42 per barrel, regardless of the price of WTI. The mandated discount on domestic sales results in a similar ceiling, after quality adjustments, within the domestic market. Gas sales are based on fixed long term sales contracts of up to four years, spot sale pricing and mandated domestic market discounted pricing. As there is currently no ability to export gas from Tierra del Fuego, the mandated discount prices and lack of export market results in a ceiling on industrial long term and spot sales prices. Further regulatory changes to the domestic market prices or export tax regime may have an adverse impact on the Company's net revenues, cash flow and earnings.

Foreign currency exchange risk

The Company is exposed to fluctuations in foreign currency exchange rates as many of the Company's financial instruments are denominated in United States dollars, British pounds sterling, or Argentine pesos, while the functional currency of the Company is Canadian dollars. As a result, fluctuations in the United States dollar, British pounds sterling, and Argentine peso against the Canadian dollar could result in unanticipated fluctuations in the Company's financial results. The Company seeks to minimize foreign exchange risk by holding cash and cash equivalents in Canadian dollars when not required in support of current operations.

17. RELATED PARTY TRANSACTIONS

The Company may from time to time enter into arrangements with related parties which are accounted for at the exchange amount. In the first three quarters of 2009, the Company incurred fees of $27,661 (2008 - $220,188) payable to Burstall Winger LLP, a law firm in which a director of the Company is a partner.

DIRECTORS

Stephen Greer
President and Chief Executive Officer Ashbourne House, The Guildway
Antrim Energy Inc. Old Portsmouth Road, Artington
Guildford, Surrey
Colin Maclean (2)(3) United Kingdom GU3 1LR
Independent Businessman Main: +44(0)1483-307 530
Fax: +44(0)1483-307 531

Dr. Brian Moss
Executive Vice President, Latin America BUENOS AIRES OFFICE

Antrim Energy Inc,
Luis Maria Campos 1061 - Piso 8
Dr. Gerry Orbell (1)(3) CP (C1426BOI), Capital Federal
Chairman and CEO Buenos Aires, Argentina
Sound Oil plc Tel: + 54 11 4779 1030
Fax: +54 11 4449 1040

Jim Perry (1)(3)
President, CEO and Director INTERNATIONAL SUBSIDIARIES

Alternative Fuel Systems (2004) Inc.
Antrim Argentina S.A.
James C. Smith (1)(2) Antrim Energy Ltd.
Independent Businessman Antrim Resources (N.I.) Limited
Netherfield Corporation

Jay Zammit (2)
Partner LEGAL COUNSEL

Burstall Winger LLP
Burstall Winger LLP
(1) Member of the Audit Committee Calgary, Alberta

(2) Member of the Compensation Committee
(3) Member of the Reserves Committee BANKERS
OFFICERS Bank of Scotland
Stephen Greer Toronto-Dominion Bank of Canada

President and Chief Executive Officer

Dr. Brian Moss
Executive Vice President, Latin America PricewaterhouseCoopers LLP
Calgary, Alberta

Douglas B. Olson
Chief Financial Officer INDEPENDENT ENGINEERS
Kerry Fulton McDaniel & Associates Consultants Ltd.

Vice President, Operations

Godfrey Stowe
Vice President, United Kingdom Inquiries regarding change of address, registered
shareholdings,
stock transfers or lost certificates should be
directed to:

Tim Haney
Corporate Secretary CIBC Mellon Trust Company
Calgary, Alberta

HEAD OFFICE LOCATION

Suite 4050 Bankers Hall West,
888 - Third Street S.W. Toronto Stock Exchange: Trading Symbol "AEN"
Calgary, Alberta Canada T2P 5C5 London Stock Exchange (AIM):Trading Symbol "AEY"

Tel: +1-403-264-5111 Fax: +1-403-264-5113 info@antrimenergy.com www.antrimenergy.com

The Company's website is not incorporated by reference in and does not form a part of this Interim Report

Antrim Energy Inc.

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